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Major tax credit increase for employers providing child care facilities

This bill significantly increases the tax credits available to employers who invest in or provide child care services for their employees. The goal is to encourage businesses to create or support child care options, making affordable services more accessible to working parents. The maximum annual credit an employer can claim is raised to $1.2 million.
Key points
The standard tax credit percentage for employers providing child care increases from 25% to 40%.
Small businesses (500 or fewer employees) can claim a 50% credit, potentially rising to 60% if the facility is located in a low-income or non-urban area.
The maximum annual credit limit for employers is substantially increased to $1,200,000.
The Treasury Department must establish a public awareness program to inform eligible employers about these enhanced credits.
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Additional Information
Print number: 118_HR_8540
Sponsor: Rep. Kustoff, David [R-TN-8]
Process start date: 2024-05-23
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Child Care for American Families Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_8540.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-05-23.

What are the main provisions?

Key points include:

  • The standard tax credit percentage for employers providing child care increases from 25% to 40%.
  • Small businesses (500 or fewer employees) can claim a 50% credit, potentially rising to 60% if the facility is located in a low-income or non-urban area.
  • The maximum annual credit limit for employers is substantially increased to $1,200,000.
  • The Treasury Department must establish a public awareness program to inform eligible employers about these enhanced credits.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Kustoff, David [R-TN-8].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Taxes Family Labor